Key Risks

(Last updated: 1/12/2025)

Investing through Ownify involves risk. Capital is at risk, and investors may not get back the amount they invest.
This page highlights the key risks you should understand before investing.

1. Capital at Risk

  • Investments in real estate are not guaranteed.

  • The value of your investment can go down as well as up.

  • You may lose part or all of the money you invest.

2. Market & Valuation Risk

  • Property prices in the UAE can rise or fall due to market conditions, interest rates, supply and demand, or wider economic factors.

  • Valuations are based on available data and independent assessments but cannot be guaranteed.

  • Past performance of the UAE property market is not a reliable indicator of future performance.

3. Rental Income Risk

  • Rental income depends on occupancy levels, tenant quality, and rental demand.

  • There may be periods of vacancy or delayed rent payments.

  • Net income can be reduced by service charges, maintenance costs, management fees, and other property expenses.

4. Liquidity & Exit Risk

  • Investments in SPV units are illiquid compared to listed shares.

  • You may not be able to exit immediately or at a price you expect.

  • Exit may depend on:

    • The planned sale of the property by the SPV, or

    • Any secondary transfer mechanism that may or may not be available in future.

There is no guarantee that a buyer will be available for your units at the time you wish to sell.

5. SPV & Legal Structure Risk

  • Each investment is made through a Special Purpose Vehicle (SPV).

  • Returns depend on the correct setup, legal standing, and ongoing management of the SPV.

  • Changes in company law, free-zone regulations, or SPV rules could affect your rights or the performance of the investment.

6. Regulatory & Tax Risk

  • Laws and regulations in the UAE (and in your home country, if you are an overseas investor) may change over time.

  • Changes in real-estate regulations, foreign ownership rules, taxation, or reporting requirements may impact your investment.

  • You are responsible for understanding any tax obligations in your own jurisdiction and seeking independent tax advice where necessary.

7. Leverage & Financing Risk

  • Where a property (or SPV) uses bank financing or leverage, interest rate changes and lender terms can affect returns.

  • Breach of loan covenants or failure to meet payments may lead to restructuring or forced sale of the property, which can reduce investor capital.

(If Ownify will not use leverage at the beginning, you can add a line:
“Currently, Ownify does not use leverage for its first properties. However, future investment opportunities may use bank financing, which introduces additional risk.”)

8. Operational & Management Risk

  • Returns depend on the performance of property managers, SPV administrators, and other service providers.

  • Poor management, delays in maintenance, or errors in administration can negatively affect rental income and capital value.

  • Platform downtime, operational issues, or human error can also affect your experience and the timing of transactions.

9. Technology & Cybersecurity Risk

  • Ownify is a digital platform that relies on technology, third-party providers, and internet connectivity.

  • While we take steps to secure our systems, no platform is completely free from cyber risk.

  • System outages, cyber-attacks, or data breaches could temporarily affect access to your account or information.

10. No Guaranteed Returns & No Deposit Protection

  • Investments made through Ownify are not bank deposits and are not covered by any deposit protection scheme.

  • Neither Ownify nor the SPV guarantees:

    • A fixed return

    • A minimum income

    • Protection of your capital

You should only invest money that you can afford to hold for the medium to long term and potentially lose.

11. Suitability & Independent Advice

  • Ownify does not provide personalised investment or financial advice.

  • You are responsible for assessing whether fractional real-estate investing is suitable for your personal situation, risk tolerance, and financial goals.

  • You should consider speaking to a licensed financial advisor if you are unsure.

Important Notice

This Key Risks summary does not list every possible risk.
By using the Ownify platform and investing in any opportunity, you confirm that you:

  • Understand that capital is at risk

  • Have reviewed the relevant property documents and SPV information

  • Accept that returns are not guaranteed and that you may lose some or all of your investment

For any questions, please contact:
Email: info@ownify.ae
Phone: +971 56 815 1377